Legislature(2007 - 2008)BARNES 124

03/20/2008 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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08:09:27 AM Start
08:09:56 AM HB243
09:22:15 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 243 COASTAL MANAGEMENT PROGRAM TELECONFERENCED
Moved CSHB 243(CRA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         March 20, 2008                                                                                         
                           8:09 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Anna Fairclough, Co-Chair                                                                                        
Representative Nancy Dahlstrom                                                                                                  
Representative Mark Neuman                                                                                                      
Representative Kurt Olson                                                                                                       
Representative Sharon Cissna                                                                                                    
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Gabrielle LeDoux, Co-Chair                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 243                                                                                                              
"An Act relating to the Alaska coastal management program."                                                                     
                                                                                                                                
     - MOVED CSHB 243(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 243                                                                                                                  
SHORT TITLE: COASTAL MANAGEMENT PROGRAM                                                                                         
SPONSOR(s): REPRESENTATIVE(s) JOULE                                                                                             
                                                                                                                                
04/26/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/26/07       (H)       CRA, RES                                                                                               
03/20/08       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE REGGIE JOULE                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of HB 243.                                                                          
                                                                                                                                
TERI CAMERY, Planner                                                                                                            
City & Borough of Juneau                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in strong support of HB 243.                                                                   
                                                                                                                                
DAN EASTON, Deputy Commissioner                                                                                                 
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Expressed concern with HB 243.                                                                           
                                                                                                                                
JOHNNY AIKEN, Director                                                                                                          
Planning Department                                                                                                             
North Slope Borough                                                                                                             
Barrow, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 243.                                                                          
                                                                                                                                
TOM OKLEASIK, Planning Director                                                                                                 
Northwest Arctic Borough                                                                                                        
Kotzebue, Alaska                                                                                                                
POSITION STATEMENT:   Testified in  support of CSHB  243, Version                                                             
C.                                                                                                                              
                                                                                                                                
KIM KRUSE, Natural Resource Manager                                                                                             
Deputy Director                                                                                                                 
Division of Coastal and Ocean Management                                                                                        
Department of Natural Resources                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 243.                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CO-CHAIR ANNA FAIRCLOUGH called  the House Community and Regional                                                             
Affairs  Standing  Committee  meeting  to order  at  8:09:27  AM.                                                             
Representatives  Fairclough,  Dahlstrom, Neuman,  Olson,  Cissna,                                                               
and Salmon were present at the call to order.                                                                                   
                                                                                                                                
HB 243-COASTAL MANAGEMENT PROGRAM                                                                                             
                                                                                                                                
8:09:56 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH announced  that the  only order  of business                                                               
would  be HOUSE  BILL NO.  243, "An  Act relating  to the  Alaska                                                               
coastal management program."                                                                                                    
                                                                                                                                
8:10:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  moved  to  adopt CSHB  243,  Version  25-                                                               
LS0896\C,  Bullock,  2/22/08, as  the  working  document.   There                                                               
being no objection, Version C was before the committee.                                                                         
                                                                                                                                
8:10:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REGGIE  JOULE, Alaska State  Legislature, speaking                                                               
as the sponsor of HB 243, provided the following testimony:                                                                     
                                                                                                                                
     This is  an effort  to improve the  partnership between                                                                    
     the State  of Alaska and coastal  communities under the                                                                    
     [Alaska]  Coastal   Zone  Management  Program.     This                                                                    
     legislation will  give coastal districts a  seat at the                                                                    
     table  in  the review  of  proposed  state and  federal                                                                    
     resource  development  actions.   An  effective  review                                                                    
     process   that  accounts   for   local  concerns   will                                                                    
     encourage  local  support  for  important,  responsible                                                                    
     development projects  in our coastal communities.   The                                                                    
     bill focuses  on three  primary areas:   clarifications                                                                    
     that  districts  may  develop meaningful  policies;  it                                                                    
     creates  a policy  board made  up  jointly of  resource                                                                    
     agencies  and coastal  districts; and  it brings  water                                                                    
     and  air   quality  concerns   of  the   Department  of                                                                    
     Environmental Conservation back to the table.                                                                              
                                                                                                                                
     Now, a  few years  ago [during the  Twenty-Third Alaska                                                                    
     State Legislature] we passed  out House Bill 191, which                                                                    
     did away with  the coastal zone as it had  been run for                                                                    
     years where ... local  coastal districts felt that they                                                                    
     had a seat at the table.   ... as I look forward to the                                                                    
     development  of   Alaska's  resources,  much   of  this                                                                    
     development  is  going to  continue  to  happen in  the                                                                    
     rural  and coastal  areas of  Alaska.   And if  there's                                                                    
     buy-in from  the local areas  in bringing  the agencies                                                                    
     and the  people together  as this development  is being                                                                    
     considered, I actually think it  can be expedited.  And                                                                    
     hopefully we  can stay out  of the courts  because that                                                                    
     seems  to be  the place  that people  are headed  right                                                                    
     now.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  JOULE then  opined that  what was  done with  the                                                               
Alaska Coastal  Management Program (ACMP) is  analogous to Senate                                                               
Bill 36,  regarding education  funding.  He  pointed out  that in                                                               
funding  education some  communities  were left  behind with  the                                                               
district  cost factors.   Arguments  about those  went on  for 10                                                               
years.  "Now  we're looking forward to  ... continued development                                                               
of  our coastal  resources and  we want  the communities  brought                                                               
back  to the  table to  have the  discussion, to  be part  of the                                                               
process,"  he  opined.   This  issue  is  very important  to  the                                                               
coastal communities of Alaska, he reiterated.                                                                                   
                                                                                                                                
8:15:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  inquired as to  what DNR hasn't  done that                                                               
seems to make it necessary to have the board.                                                                                   
                                                                                                                                
REPRESENTATIVE   JOULE  said   that  there   will  be   testimony                                                               
forthcoming  on that  issue.   He  recalled that  of the  40-some                                                               
proposals the  Northwest Arctic Borough  brought forward,  only 1                                                               
was  adopted.   Therefore, a  single agency  makes it  difficult.                                                               
The lack  of action from DNR  in regard to the  implementation of                                                               
proposals resulted in the introduction of HB 243.                                                                               
                                                                                                                                
8:17:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  inquired as to  what the sponsor  meant by                                                               
the statement that districts can create meaningful policies.                                                                    
                                                                                                                                
REPRESENTATIVE  JOULE reiterated  that  the  committee will  hear                                                               
from  district  representatives.    However,  as  an  example  he                                                               
highlighted  that   in  rural  communities  the   development  of                                                               
policies around  subsistence, which isn't under  consideration at                                                               
this time,  is very important.   He then mentioned water  and air                                                               
quality issues and the development of mineral resources.                                                                        
                                                                                                                                
8:19:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  recalled working on earlier  versions of HB
243.  He  mentioned that he didn't recall  the term "subsistence"                                                           
on page 6, lines 2 and 5,  was included in prior versions of this                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOULE answered  that the  term "subsistence"  was                                                           
included because  it's a real  issue that should  be acknowledged                                                               
and addressed.   In  any coastal  zone, [subsistence]  has always                                                               
been  an important  issue to  the local  areas.   Still, to  have                                                               
those  issues  acknowledged  at this  level  could  expedite  the                                                               
decision-making process,  he opined.   He pointed out  that there                                                               
was  a huge  issue with  regard to  subsistence and  the Red  Dog                                                               
Mine,  yet   the  project  still   moved  forward.     Therefore,                                                               
Representative Joule viewed [the  inclusion of subsistence] as an                                                               
opportunity rather than a threat.                                                                                               
                                                                                                                                
8:20:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN referred to paragraph  (5) on page 5, lines                                                               
28-31,  and opined  that the  aforementioned  language brings  to                                                               
mind Pebble  Mine.  He  asked if  [paragraph (5)] means  that the                                                               
value of  Pebble Mine has to  be measured as compared  to Bristol                                                               
Bay fisheries.                                                                                                                  
                                                                                                                                
REPRESENTATIVE JOULE deferred to others with more knowledge.                                                                    
                                                                                                                                
8:22:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  recalled that  in 1975  in Kodiak  she was                                                               
part  of a  community process  in which  there was  a large  town                                                               
meeting  that  brought  together  locals.    She  requested  more                                                               
explanation  regarding the  different kinds  of things  the board                                                               
can do to bring in the far-reaching areas of the state.                                                                         
                                                                                                                                
REPRESENTATIVE JOULE remarked  that one of the  advantages of the                                                               
development of  this proposed board  is that it would  bring much                                                               
expertise, that  is balanced  expertise that  can be  utilized by                                                               
state  agencies.   He said  that [this  proposed board]  could be                                                               
advantageous  to  the state.    In  the  history of  North  Slope                                                               
development,  he recalled  that "they"  didn't really  oppose any                                                               
development,  although there  may  have been  concerns that  they                                                               
were able  to work through.   He recalled  that it was  after the                                                               
passage of  House Bill 191  that there was opposition,  which may                                                               
have been coincidental.                                                                                                         
                                                                                                                                
8:26:29 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH  clarified that  the objectives listed  in AS                                                               
46.40.020 is existing  language and the only change  in Version C                                                               
is  from  "which"  to  "that".   However,  she  highlighted  that                                                           
Version C includes new language  in Section 1, new subsections in                                                               
Section 10, and a new subsection in Section 14.                                                                                 
                                                                                                                                
8:28:02 AM                                                                                                                    
                                                                                                                                
TERI CAMERY, Planner, City &  Borough of Juneau, related that the                                                               
City &  Borough of Juneau  strongly supports  HB 243.   The basic                                                               
measure outlined  in this legislation  is a positive  step toward                                                               
restoring the integrity of the  coastal management program, which                                                               
has been  under heavy criticism  over the  last few years.   This                                                               
legislation  clarifies   much  confusion   with  regard   to  the                                                               
allowable   district  policies   and   requirements,  which   she                                                               
characterized  as the  most important  thing HB  243 does.   With                                                               
regard to  Juneau, Juneau's original coastal  management plan had                                                               
99 policies  that is now  down to about  12.  She  estimated that                                                               
the  language in  HB 243  would've taken  2-3 years  off Juneau's                                                               
permit process.   Ms. Camery opined that it's  in everyone's best                                                               
interest to  make the criteria for  district enforceable policies                                                               
as clear as possible.                                                                                                           
                                                                                                                                
MS. CAMERY then turned to  the earlier question regarding why the                                                               
proposed Alaska  Coastal Policy Board  is necessary.   The Alaska                                                               
Coastal Policy  Board is very  important for the ACMP  because it                                                               
provides  district representation  and representation  from three                                                               
different agencies.  The most  critical reason to reestablish the                                                               
board, she  opined, is that  any comprehensive review  of coastal                                                               
management issues will  overlap in a number of  areas which can't                                                               
be  separated  out.   To  have  a  fair  and balanced  review  of                                                               
statewide standards, there must  be broader agency participation.                                                               
She then  pointed out  that the  proposed new  board is  half the                                                               
size of  the previous council, which  she saw as efficient.   Ms.                                                               
Camery  emphasized  the  importance   of  the  inclusion  of  the                                                               
Department of Environmental Conservation  (DEC) into the process,                                                               
particularly  in  Juneau  where  there are  five  impaired  water                                                               
bodies that are exclusively regulated by  DEC.  When DEC comes in                                                               
after  the  fact,  it  causes   problems,  particularly  for  the                                                               
developer.  Ms.  Camery said that the legislation  doesn't go far                                                               
enough as it isn't a complete restoration of DEC's role.                                                                        
                                                                                                                                
MS.  CAMERY  then  turned  to the  question  regarding  why  this                                                               
legislation  is   necessary  since  DNR  has   launched  its  own                                                               
reevaluation program.   The issues addressed in HB  243 have been                                                               
raised by the districts over and  over again.  She mentioned that                                                               
the  Alaska Coastal  District Association  has  drafted a  letter                                                               
that  outlines a  list of  concerns.   Ms. Camery  said that  she                                                               
didn't  see  the need  to  wait  for  DNR's reevaluation  as  the                                                               
problems addressed  by HB 243 are  well-documented.  Furthermore,                                                               
she said she  is disturbed that DNR is opposed  to SB 161 because                                                               
it  seems to  indicate  that  DNR isn't  open  to these  proposed                                                               
changes,  which are  critical to  achieving a  balanced decision-                                                               
making process.  Ms. Camery  then informed the committee that the                                                               
coastal  management program  isn't an  environmental program  but                                                               
rather is a  decision-making tool that brings in  all the various                                                               
parties and  allows the districts  and agencies to have  a voice.                                                               
She characterized  the program as  a permit  coordination process                                                               
that brings  in all parties  and benefits the  developer overall.                                                               
She noted that it's extremely rare for a project to be denied.                                                                  
                                                                                                                                
8:37:13 AM                                                                                                                    
                                                                                                                                
DAN  EASTON,  Deputy  Commissioner, Department  of  Environmental                                                               
Conservation,  said  that DEC's  interest  is  in regard  to  the                                                               
changes on  page 8, lines  1-3, which addresses the  instances in                                                               
which [DEC]  would make a  consistency finding but not  issuing a                                                               
permit or  other form of  authorization.  He explained  that when                                                               
DEC  issues a  permit  or other  authorization,  there is  public                                                               
notice  and  the  opportunity  for comment.    The  new  language                                                               
requires  that even  when no  permit is  issued, separate  public                                                               
notice  and the  opportunity for  public comment  would be  held.                                                               
The department  doesn't have a  problem with  the aforementioned,                                                               
although it could add  a bit of time to the  process.  He related                                                               
his understanding that this new  language has been highlighted as                                                               
a  way to  bring  DEC back  into  the program,  to  which DEC  is                                                               
amenable.   The  legislation also  adds a  new subsection  (e) on                                                               
page 8,  lines 16-20, which  is problematic.  New  subsection (e)                                                               
requires  that the  coordinating agency  evaluate whether  air or                                                               
water  discharges  are  consistent  with ACMP  standards  in  the                                                               
enforceable district policies.   However,  subsection  (b) of [AS                                                               
46.40.040]  clearly  states  that   the  state's  air  and  water                                                               
standards  are  the  exclusive   enforceable  policies  of  ACMP.                                                               
Whenever there's  an air or  water discharge, DEC  reviews those,                                                               
which  are only  authorized if  they  comply with  state air  and                                                               
water  standards.    Therefore,   the  review  called  for  under                                                               
proposed subsection  (e) is something  that DEC already  does and                                                               
thus proposed  subsection (e) creates confusion.   In conclusion,                                                               
Mr. Easton  acknowledged that there  is concern that  the coastal                                                               
districts  have  been adversely  impacted  by  recent changes  to                                                               
ACMP,  and thus  it  must  be addressed.    He  related that  DEC                                                               
believes  there  is  the   opportunity  for  better  coordination                                                               
between the DEC  permitting process and the ACMP  processes.  Mr.                                                               
Easton related [the department's]  commitment to working with the                                                               
districts to determine what improvements can be made.                                                                           
                                                                                                                                
8:41:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN,  referring  to  the  sectional  analysis,                                                               
related that  proposed subsection  (e) clarifies that  aspects of                                                               
the  air  and water  discharges  not  covered  by DEC's  laws  or                                                               
regulations  may  be  reviewed  for  consistency  with  statewide                                                               
standards or  district policies.  However,  DEC retains authority                                                               
to determine a  projects' consistency with its  laws.  Therefore,                                                               
Representative Neuman  surmised that  DEC retains  full authority                                                               
and  the  language "may"  doesn't  mean  that  anyone has  to  do                                                               
anything.                                                                                                                       
                                                                                                                                
MR.  EASTON  pointed  out  that the  language  used  in  proposed                                                               
subsection  (e) is  "shall",  which is  mandatory  language.   He                                                               
mentioned  that   DEC's  attorneys  might  not   agree  with  the                                                               
interpretation in the sectional analysis.                                                                                       
                                                                                                                                
8:43:26 AM                                                                                                                    
                                                                                                                                
MR. EASTON, in response to Co-Chair Fairclough, said that DEC                                                                   
has no official position on HB 243 as it defers to DNR, the lead                                                                
agency.                                                                                                                         
                                                                                                                                
8:44:22 AM                                                                                                                    
                                                                                                                                
JOHNNY AIKEN, Director, Planning Department, North Slope                                                                        
Borough, provided the following testimony:                                                                                      
                                                                                                                                
     On behalf  of the North  Slope Borough I would  like to                                                                    
     speak in  support of HB  243, the companion bill  to SB
     161.  This bill goes a  long way to fix the problems we                                                                    
     face  during the  required  amendment  process for  our                                                                    
     coastal  management   plan.     Because  most   of  the                                                                    
     enforceable policies  and designated areas  we proposed                                                                    
     in  the process  ...  were denied  by  DNR, even  after                                                                    
     multiple attempts  on our part  to meet the  demands of                                                                    
     the  agency,  the  North Slope  Borough  has  requested                                                                    
     mediation to  resolve our  plan revision.   One  of the                                                                    
     biggest  problems we  had is  gaining  approval of  the                                                                    
     relatively few policies we  have proposed.  Enforceable                                                                    
     policies  are  the  backbone   of  a  coastal  district                                                                    
     program,   and  without   effective  policies   coastal                                                                    
     management has little  value.  The reasons  used by the                                                                    
     last  administration  to  deny  our  old  policies  are                                                                    
     difficult   to   understand.       DNR   has   recently                                                                    
     acknowledged  that approval  criteria  it has  utilized                                                                    
     are more  stringent than what was  intended under House                                                                    
     Bill   191,   the   original  2003   legislation   that                                                                    
     drastically  amended  the   Alaska  Coastal  Management                                                                    
     Program [which] has thrown  the program into confusion.                                                                    
     The  bill  before  you   would  create  more  certainty                                                                    
     because  it  makes   the  enforceable  policy  approval                                                                    
     criteria more clear.   The bill would also  fix some of                                                                    
     the problems  we faced with  what has come to  be known                                                                    
     as the DEC  carve out.  DEC would still  have the final                                                                    
     word on  all matters it  regulates, but it would  be at                                                                    
     the table  with other  agencies during  the consistency                                                                    
     review  process.   Right now  we believe  there are  no                                                                    
     provisions for comment on air  and water quality issues                                                                    
     during the  coastal management  program reviews  of the                                                                    
     Outer  Continental Shelf  projects.    This bill  fixes                                                                    
     that.   Also,  this resolves  an unanticipated  problem                                                                    
     resulting  from the  carve out.   Currently,  the North                                                                    
     Slope  Borough cannot  comment on  possible effects  on                                                                    
     subsistence from an oil spill.   Bringing DEC back into                                                                    
     the process will allow review  of air and water quality                                                                    
     issues  not regulated  by DEC.   I  would also  like to                                                                    
     express support for the coastal  policy board.  If this                                                                    
     board was in  place during the last few  years, I don't                                                                    
     think we  would be in  mediation right now  because the                                                                    
     board   would   include  representatives   of   coastal                                                                    
     districts  and the  state resources  agencies.   It  is                                                                    
     more  likely to  make sound  decisions with  widespread                                                                    
     support. ...   I'd like to conclude  testimony today by                                                                    
     saying   that   the   North  Slope   Borough   supports                                                                    
     responsible   development.       Before   the   Coastal                                                                    
     Management Program  was reformed  in 2003,  it provided                                                                    
     an excellent  forum to work on  project-related issues.                                                                    
     HB   243   creates   more  incentives   for   agencies,                                                                    
     districts, and  applicants to  work together;  it fixes                                                                    
     the problems  with the DEC  carve out and  it clarifies                                                                    
     the criteria  for approval  of coastal  district plans.                                                                    
     I would  just like  to thank  the Senate  Community and                                                                    
     Regional Affairs  Committee and especially  Donny Olson                                                                    
     for passing SB 161.  I  hope this committee will do the                                                                    
     same with HB 243 and  fix the problems created by House                                                                    
     Bill 191.   I hope that you will hear  our comments and                                                                    
     the comments  submitted by other  districts.   I'd like                                                                    
     to  also  thank  Representative Joule  for  introducing                                                                    
     this HB 243 ... and urge you to approve HB 243.                                                                            
                                                                                                                                
8:50:20 AM                                                                                                                    
                                                                                                                                
TOM  OKLEASIK,  Planning   Director,  Northwest  Arctic  Borough,                                                               
testified in  support of CSHB  243, Version  C.  He  informed the                                                               
committee  that  like  the North  Slope  Borough,  the  Northwest                                                               
Arctic  Borough has  been revising  its  coastal management  plan                                                               
since  2005 and  have met  all the  deadlines, requirements,  and                                                               
efforts requested  by the  agency.   However, the  borough hasn't                                                               
been able to  receive approval of the plan, primarily  due to all                                                               
the changes  that have  been made.   He  noted that  although the                                                               
Northwest  Arctic Borough  has proposed  numerous policies,  only                                                               
one  has been  approved.   Furthermore, the  borough's designated                                                               
areas have  also been  denied.   Currently, the  Northwest Arctic                                                               
Borough is  in the  mediation process with  the state,  which has                                                               
taken over a year.   He noted that this is the  first time in the                                                               
history  of ACMP  that  it  has ever  had  to  use the  mediation                                                               
process.  For  many years the ACMP helped the  borough assist the                                                               
state in cooperative efforts  to promote responsible development,                                                               
especially  by the  residents most  impacted  in the  area.   The                                                               
removal  of the  borough's  ability to  establish meaningful  and                                                               
enforceable  policies has  reduced the  value of  the program  as                                                               
well  as the  opportunity  to promote  balanced development  that                                                               
respects all  Alaskans.  Mr.  Okleasik stated that  the Northwest                                                               
Arctic  Borough supports  HB 243  because it  believes it  brings                                                               
more balance  into decision making for  coastal management issues                                                               
and clarifies  that coastal  districts can  establish enforceable                                                               
policies so  long as these  policies address matters  that aren't                                                               
adequately  covered by  state or  federal law.   The  legislation                                                               
also  brings  balance back  to  the  program decision  making  by                                                               
bringing  DEC  back into  the  ACMP  consistency review  process.                                                               
Furthermore,  creation of  the Coastal  Policy Board  will ensure                                                               
that  the  coastal  districts  and  the  resource  agencies  work                                                               
together  on major  coastal  issues.   Mr.  Okleasik related  his                                                               
belief that HB 243 will prevent  many of the problems the borough                                                               
has faced  over the past  few years to effectively  implement the                                                               
area's coastal  management program and establish  approval of the                                                               
revised  plan.    In  conclusion,  Mr.  Okleasik  reiterated  the                                                               
borough's support of  HB 243 as it  clarifies legislative intent,                                                               
reduces  complexity  of  the ACMP  regulation,  and  brings  more                                                               
predictability to the ACMP, which  will be good for the districts                                                               
as well as the developers.                                                                                                      
                                                                                                                                
8:53:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  inquired as to  why DNR didn't  accept any                                                               
of the Northwest Arctic Borough's recommendations.                                                                              
                                                                                                                                
MR. OKLEASIK  answered that it  was simply  interpretation, which                                                               
is  why the  matter is  going to  mediation.   He noted  that the                                                               
borough performed all of the  changes requested by DNR.  However,                                                               
[the department]  lacked consistency  with regard to  the changes                                                               
it requested because after changes  would be made, the department                                                               
would  specify  others  that  lead the  borough  in  a  different                                                               
direction.                                                                                                                      
                                                                                                                                
8:54:58 AM                                                                                                                    
                                                                                                                                
KIM KRUSE,  Natural Resource  Manager, Deputy  Director, Division                                                               
of   Coastal  and   Ocean  Management,   Department  of   Natural                                                               
Resources, explained  that ACMP  is a state-managed  program that                                                               
has  been in  place since  the late  1970s.   One of  the primary                                                               
purposes  of the  ACMP is  to provide  project applicants  with a                                                               
single  point of  contact when  the project  is located  within a                                                               
coastal zone or requires certain  state permits for other federal                                                               
authorization.   The  ACMP also  serves as  the state's  voice on                                                               
federal  agency  activities  when  those  activities  impact  the                                                               
state's coastal zone.   As has been mentioned, ACMP  is a network                                                               
program that attempts to balance  competing state resource agency                                                               
interests, federal agency  interests, local government interests,                                                               
applicants, industry  interests, and  other nonprofit  and public                                                               
interests.    The  key  component  of  ACMP,  as  has  also  been                                                               
mentioned, is the  local input provided by  the coastal districts                                                               
on  state and  federally  permitted projects.    She then  echoed                                                               
earlier  comments  that  the  statutory  changes  over  the  past                                                               
several  years  have distanced  many  of  the coastal  districts.                                                               
While many  of the coastal  districts have  challenged themselves                                                               
to meet  some exceptionally difficult district  planning revision                                                               
timelines,  others   remain  disenfranchised  and   are  actively                                                               
challenging some  of the statutory  changes to the program.   Ms.                                                               
Kruse  opined  that  this legislation  illustrates  some  of  the                                                               
dissatisfaction some  of the coastal  districts continue  to have                                                               
with the current management program.                                                                                            
                                                                                                                                
MS. KRUSE  turned to  DNR's proposed  program reevaluation.   Ms.                                                               
Kruse related  that DNR's  commissioner and  deputy commissioners                                                               
have  the  administration's  support  for and  are  committed  to                                                               
reevaluating  the ACMP  changes.   She noted  that the  committee                                                               
should have a  letter dated February 22, 2008,  that outlines the                                                               
key steps  and pertinent issues.   Due  to the perception  of the                                                               
process  that  occurred  during  the  past  administration,  this                                                               
process is very important.   The importance of addressing the DEC                                                               
carve out  has also been  recognized.  The department  would like                                                               
to revisit the coastal districts'  authority and ability to write                                                               
meaningful and  enforceable policies.   Ms. Kruse  clarified that                                                               
this isn't necessarily a discretionary  DNR action as it requires                                                               
either  a  statutory or  regulatory  change.   This  reevaluation                                                               
process  will  begin  in  July  and go  through  December.    The                                                               
important  part of  the evaluation  is  to bring  in all  network                                                               
parties,  which   is  a  bit   different  than  HB  243.     When                                                               
coordinating projects,  the department has to  also consider many                                                               
other  agency and  industry interests,  and therefore  she opined                                                               
that  the  reevaluation  process  would  allow  legislation  that                                                               
represents the  wide range  and diverse  interests of  the entire                                                               
network to be ready for  introduction in January.  The department                                                               
proposes that any necessary regulations  would be drafted between                                                               
May  and August.   Ms.  Kruse  reiterated the  importance of  the                                                               
program reevaluation  and any subsequent  legislation to  be done                                                               
in a fashion that allows input from all interested participants.                                                                
                                                                                                                                
9:00:39 AM                                                                                                                    
                                                                                                                                
MS.  KRUSE,  turning to  the  legislation  before the  committee,                                                               
related  DNR's  opposition  to  HB  243,  as  currently  written.                                                               
However,  she  said that  the  legislation  serves to  start  the                                                               
dialogue and highlight  key elements that DNR  believes should be                                                               
reevaluated.   Mr.  Kruse informed  the committee  that DNR  does                                                               
share the sponsor's goal of  developing coastal district policies                                                               
that are  both meaningful and  effective as  well as the  goal of                                                               
revisiting  DEC's  participation in  the  review  process.   With                                                               
regard  to  creation  of  the board,  as  currently  written  the                                                               
management authority  for the state's coastal  management program                                                               
would transfer  from the state  to a newly created  policy board,                                                               
which  consists  of  four  appointed  public  members  and  three                                                               
commissioners.   The aforementioned, she opined,  seems to create                                                               
an  imbalance  and transfer  state  authority  to local  decision                                                               
makers.   The  legislation  appears to  transfer many  day-to-day                                                               
operations,  including  administering  the program,  setting  and                                                               
approving policies, managing and  approving the district planning                                                               
process, approving regulations, and  accepting and managing grant                                                               
funds,  to  the  board.    Some  past  experience,  she  related,                                                               
indicates that the creation of  a coastal policy board can result                                                               
in delayed  decision making, duplicate authority,  and is perhaps                                                               
likely  not the  most  efficient way  to manage  a  program.   In                                                               
conclusion, Ms.  Kruse requested  that the committee  not endorse                                                               
the  language  and  provisions  in  HB  243,  particularly  those                                                               
addressing  the   coastal  policy  board  and   transferring  the                                                               
operations and state management  authority to the proposed board.                                                               
She  reiterated  that  DNR  does  believe that  in  order  to  be                                                               
effective any proposed legislation  should include input from all                                                               
network partners.                                                                                                               
                                                                                                                                
9:04:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  recalled hearing the frustration  that the                                                               
state government  is far away  and makes  recommendations without                                                               
hearing from  the locals in the  impacted area.  She  pointed out                                                               
that the earlier-mentioned letter  relates the calendar for DNR's                                                               
reevaluation process.   The review process starts  in June, which                                                               
is when many people are  performing subsistence or industry work,                                                               
and therefore they  will likely not be available  to be involved.                                                               
Furthermore, although DNR's process is  to result in the drafting                                                               
of legislation, there  is legislation that has  been drafted with                                                               
local  concerns.   She questioned  how the  [legislative] process                                                               
can  be shaped  in order  that the  impacted area  can shape  the                                                               
process.   Representative Cissna  reminded the members  that they                                                               
were sent by the local communities.                                                                                             
                                                                                                                                
9:09:24 AM                                                                                                                    
                                                                                                                                
MS. KRUSE  pointed out that the  ACMP reviews the beginning  of a                                                               
project slated  for development  and tries to  pull in  the local                                                               
piece while looking  to other partners in a  project and identify                                                               
key issues upfront.  Once DNR's  portion of the review process is                                                               
complete, the  project then moves  to the  responsible permitting                                                               
agency.  She  noted that local districts have  the opportunity to                                                               
submit comments and  notice through those processes.   One of the                                                               
unique things  that has made the  ACMP successful in the  past is                                                               
it's  one of  the  few  programs that  is  a voluntary  outreach.                                                               
Since  the districts  have chosen  to participate,  the districts                                                               
and  local perspective  have historically  been a  very important                                                               
part  of ACMP.    She  acknowledged that  the  changes under  the                                                               
Murkowski Administration have made  it difficult for districts to                                                               
develop policies  without duplicating state or  federal policies.                                                               
Ms. Kruse expressed  hope that the districts  will participate in                                                               
the  review  process.   With  regard  to  the timeline  of  DNR's                                                               
reevaluation,  Ms. Kruse  commented  that in  Alaska there  never                                                               
seems  to be  a  good time  to  start or  finish  anything.   She                                                               
interpreted the districts'  support for HB 243 to  mean that they                                                               
care, and  she opined that  the districts  care enough to  find a                                                               
way to  have a  representative present.   Ms. Kruse  offered that                                                               
DNR can  assist with  the reevaluation to  make the  program more                                                               
balanced.                                                                                                                       
                                                                                                                                
9:12:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  commented that  Ms. Kruse has  pointed out                                                               
why HB 243 is important legislation.                                                                                            
                                                                                                                                
9:12:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH,  upon determining  no  one  else wished  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
9:13:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOULE informed the  committee that the prior board                                                               
consisted of  14 members, including  9 coastal communities  and 5                                                               
state agencies.  That board  had more authority and no mediation.                                                               
However, since  the inception of  House Bill 191, there  has been                                                               
at  least three  instances  of mediation.   Representative  Joule                                                               
opined that  as the state  develops its resources,  locals should                                                               
be  involved in  the process.    One of  the reasons  HB 243  was                                                               
introduced   was   due   to  DNR's   overreaching   fashion   and                                                               
nonresponsiveness  to  community  issues.   Representative  Joule                                                               
said that he  wants this legislation to move forward  and to have                                                               
more of a  consensus view regarding how to build  this state.  He                                                               
reiterated that the best way to do  so is to involve those at the                                                               
local level.   He noted  that the  committee should have  the new                                                               
sectional analysis, which addresses  some of the issues discussed                                                               
today.                                                                                                                          
                                                                                                                                
9:16:59 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH inquired  as to  the will  of the  committee                                                               
with regard to hearing this  legislation next Tuesday.  She noted                                                               
that she  and Co-Chair  LeDoux won't  have a  chance to  meet and                                                               
discuss  the legislation.   She  further  noted that  legislation                                                               
sponsored  by  Representative  Gatto   is  on  the  schedule  for                                                               
Thursday.   She  then asked  if the  committee wants  to meet  on                                                               
Tuesday.                                                                                                                        
                                                                                                                                
9:18:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM  related  her  preference  to  meet  on                                                               
Thursday in order  that the co-chairs may talk and  in order that                                                               
she  be able  to  participate.   She related  that  she won't  be                                                               
present Tuesday morning.                                                                                                        
                                                                                                                                
9:18:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  said  that although  she's  scheduled  to                                                               
attend a series of constituent  meetings, she's willing to change                                                               
her plans  to be  present on  Tuesday morning  as there  are only                                                               
three to four weeks left in this session.                                                                                       
                                                                                                                                
CO-CHAIR FAIRCLOUGH clarified that the  issue is that she and Co-                                                               
Chair LeDoux  won't have time  to discuss the  legislation, which                                                               
Co-Chair  LeDoux  didn't  hear.    Furthermore,  Co-Chair  LeDoux                                                               
represents a coastal community and thus  she may want to weigh in                                                               
on  HB  243.   She  also  noted  that Representative  Neuman  had                                                               
expressed  concerns and  although she  thought she  had addressed                                                               
those, she hasn't discussed them with him.                                                                                      
                                                                                                                                
9:20:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  announced that  he is going  to call  for a                                                               
vote  on  HB 243  because  it's  very important  legislation  and                                                               
waiting  means that  the legislation  won't be  heard until  next                                                               
Thursday.   "I hate seeing it  lose a week for  obvious reasons,"                                                               
he said.                                                                                                                        
                                                                                                                                
9:21:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  moved  to  report CSHB  243,  Version  25-                                                               
LS0896\C,  Bullock, 2/22/08,  out  of  committee with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
CO-CHAIR FAIRCLOUGH objected.                                                                                                   
                                                                                                                                
9:21:29 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.   Representatives Salmon, Dahlstrom,                                                               
Olson, and Cissna  voted in favor of reporting  CSHB 243, Version                                                               
25-LS0896\C,  Bullock, 2/22/08,  from committee.   Representative                                                               
Fairclough  voted  against  it.   Therefore,  CSHB  243(CRA)  was                                                               
reported  out  of  the  House   Community  and  Regional  Affairs                                                               
Standing Committee by a vote of 4-1.                                                                                            
                                                                                                                                
9:22:09 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Community  and Regional  Affairs Standing  Committee meeting  was                                                               
adjourned at 9:22:15 AM.                                                                                                      
                                                                                                                                

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